As the Company changed its year-end during 1999, all year on year comparisons in this release are between the year ended December 31, 1999 ("fiscal 1999") and the year ended September 30, 1998 ("fiscal 1998"). The quarter on quarter comparisons are between the quarter ended December 31, 1999 and the quarter ended December 31, 1998.
For fiscal 1999, income excluding net realized gains and non-recurring expenses was $329.8 million or $1.67 per share compared with $418.4 million or $2.21 per share for fiscal 1998. Net income for the year was $365.0 million or $1.85 per share versus $560.2 million or $2.96 per share for fiscal 1998. Earnings per share calculations are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis. The fully diluted book value per share of the company at December 31, 1999 was $20.28.
Brian Duperreault, chairman and chief executive officer of ACE commented: "While heavy catastrophe losses dominated the fourth quarter's results for most companies, particularly in Europe, the ACE Group of Companies weathered these events without incurring any unusually large losses. Our underwriters did an excellent job of risk
management."
Mr. Duperreault continued: "ACE has entered the year 2000 as a unique worldwide insurance and reinsurance enterprise. The acquisitions of ACE INA and Capital Re have added substantial global diversification and new product capabilities to the Group. ACE INA has transformed the ACE Group, giving it an international presence that can not be easily replicated, while Capital Re establishes ACE as a significant player in the financial guaranty reinsurance business."
Gross premiums written during the December 31, 1999 quarter increased by 443 percent to $1.4 billion, compared with $254.1 million for the comparable quarter in 1998. Net premiums written during the December 31, 1999 quarter were $851.5 million compared with $154.1 million for the same period in 1998. Net premiums earned during the quarter were up 334.5 percent to $947.2 million from $218.0 million in the same quarter in 1998.
Gross premiums written for fiscal 1999 were $3.9 billion compared with $1.2 billion for fiscal 1998, an increase of 211.5 percent. For fiscal 1999, net premiums written increased 182.5 percent to $2.5 billion compared with $883.3 million for fiscal 1998. Net premiums earned for the year ended December 31, 1999 were $2.5 billion compared with $896.6 million for fiscal 1998, a 177.2 percent increase.
Net investment income, excluding net realized gains, was $159 million for the fiscal 1999 fourth quarter, compared with $85.1 million for the same period last year. For the year ended December 31, 1999, net investment income, excluding net realized gains was $493.3 million compared with $324.3 million for fiscal 1998. During the 1999 fourth quarter, ACE had net realized gains, net of tax, of $53.3 million, compared with net realized gains of $130.1 million for the same quarter in 1998. For the year ended December 31, 1999, net realized gains, net of tax, were $42.1 million, compared with net
realized gains of $188.4 million for fiscal 1998.
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: www.acelimited.com.
Application of the Safe Harbor of the Private Securities Litigation
Reform Act of 1995:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, actual losses from catastrophic events may differ from estimates as damage is assessed and claims are reported. ACE's forward-looking statements could be affected by the levels of new and renewal business achieved, market acceptance of ACE's diversificationand market conditions affecting ACE's investments. Also, competition in the industry, the frequency of unpredictable catastrophic events, and economic, regulatory, insurance and reinsurance business conditions and other factors identified in the Company's filings with the Securities and Exchange Commission could affect the forward-looking statements contained in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.